Fosina Marketing Group PARALLELS of “ The Perfect Storm” to The Evolution of Direct to Consumer...

Fosina Marketing Group

PARALLELSof

“ The Perfect Storm”

to

The Evolution of Direct to Consumer Acquisition


• In 1991 the Northeastern American

fishing industry experienced a truly

monumental weather phenomena coined

“The Perfect Storm”.

• Today we stand poised for a similar

phenomena in Direct to Consumer Marketing.

““THE PARALLELTHE PARALLEL””


““To Be Or Not To Be”To Be Or Not To Be” As the story of “The Perfect Storm” is told, the Captains of fishing ships that heeded warning and navigated this weather phenomena returned home with their bountiful catch. The Captain of the Andrea Gail drove directly through the storm and without careful calculation never returned home.


The “Perfect Direct Marketing Storm”The “Perfect Direct Marketing Storm”

We are experiencing a convergence of multiple external forces all of which have powerful momentum unto themselves •Senseless and uncontrollable Postage Rates•Rising Print and Paper costs•Lower traditional consumer response•Shrinking Mail, Print and Package Insert universes•Higher transportation costs•Shift in consumer purchase behavior Mayday ….. Mayday ….. Mayday


“Ship versus Sea”Ship versus Sea”

•Those Direct Marketers who are navigating the storm are casting new nets and reaping the rewards.

•If we do nothing or simply the same we’ll be swallowedup by the vast marketing ocean.

“ “Set Your CompassSet Your Compass””

•Acknowledge changing consumer behavior towards advertising

•No longer accept the USPS as a necessity, but as an option

•Find alternatives to replenish prospect universes

•Recognize consumption patterns of today versus yesterday

Re-cast Your Nets


Consumers are still interested in continuity, subscriptions,and single sales opportunities for products and servicesof interest.

The only changes are how consumers want to engage and marketers must address how to accommodate thisevolving consumer expectation.

The Product Replenishment Model Lives The Product Replenishment Model Lives OnOn


The “World Wide Web”The “World Wide Web”

Presents New Nets to CastPresents New Nets to Cast


““New Coordinates”New Coordinates”

Cost Effective Internet Options to incorporate into your media plan to weather “The Perfect Direct Marketing Storm”

• Co-registration

• Universal or Blended Search

• Mobile Ecommerce

• Social Networking

•Transparency MarketingFosina Marketing Group


Co-Registration Marketing

•Effectively use online co-registration to develop qualified leadsto build your prospect lists

Here is how to do it!

““Can’t Resist Can’t Resist Inquisitiveness”Inquisitiveness”

Human nature is to inquire. The Internet provides endless opportunities to engage in Co-registration through:

• Surveys

• Registrations

• Incentives


““Inquiries are not Sales Inquiries are not Sales Transactions”Transactions”

The desire to inquire or the lure of an incentive casts a very wide netThe conversion to sale requires qualification and confirmation:

•Ask qualifying questions at point of inquiry•Validate contract information•Convert or confirm sale prior to shipment

EmailPhonePostal



• Simple, genericquestion on surveypage:

• “Are you interestedin helping your childdo better in school?

• Data: FN, LN,Address, Phone, Email,DOB, Gender and Affirmative Opt-in.

• Volume Potential-2,000-5,000 per day


Option 1 – Standard Opt-In PlacementOption 1 – Standard Opt-In Placement*Consumers indicate interest (Y/N) and basic information is sent to advertiser.


Option 3 - Provider Hosted Custom Form Opt-InOption 3 - Provider Hosted Custom Form Opt-In

• Provider Hosted Lead Generation form; this will be your highest quality lead

•Includes qualifying questions

•Targeted paths

• Sell and resell opportunity


““Inquiries are not Sales” Inquiries are not Sales” Immediately Follow up on Hotline

Leads to Convert into a Sale

Telemarketing Email


Tips to Get it Right!Tips to Get it Right!

Generating the inquiry

•Cost per Performance ( Cost Per Lead)•Feature Your Brand•Copy and Creative Counts•Media Placement Critical•Ask Qualifying Questions

Generating the inquiry

•Cost per Performance ( Cost Per Lead)•Feature Your Brand•Copy and Creative Counts•Media Placement Critical•Ask Qualifying Questions


Telemarketing

Inquiry to SaleInquiry to Sale

Close the Sale


Email

• Email within seconds of inquiry• Feature your Brand• Resell the offer• Provide opt-out• Develop multiple email contact strategy• Test and retest offers• Close the sale

Inquiry to SaleInquiry to Sale


• Build a solid contact strategy to compliment your target customer

• First email should be an auto-responder deployed within hours of lead generated

• Send as many as 6 emails

•Remember the consumer gave you permission to email

• Phone follow up must be quick and relevant

Co-registration Critical Success FactorsCo-registration Critical Success Factors


Universal Universal and Blended and Blended SearchSearch

““Stop Hiding”Stop Hiding”

Making it Easier to be Found


Search Engines now provide for blended search results:

What is Universal and Blended What is Universal and Blended Search?Search?

When the engines crawl websites pages, they will blend listings not

only from content but news, video, images, local and book

search


Universal or Blended Search Example Universal or Blended Search Example


““Harness Consumer Ambiguity”Harness Consumer Ambiguity”

As with this illustration “Search for Mount Everest”, the user may be searching for:

Mountain’s heightView a picture

Read the Latest NewsAbout Expeditions

View a Video of a ClimberFind a Book

Any Number of other reasons

““Establish Relevance”Establish Relevance”

Blended search will provide more search engine

inventory marketers must take advantage of:

•Image display in search result

•Closely related information in search result

copy

•Call to action with promise to pay off

•Optimized digital assets making it easier to be

found Fosina Marketing Group

““Relevance to Direct Marketers”Relevance to Direct Marketers”

Ranked images and videos on search pages provide for a visual and closer look at products rather than just copy explanation• Consumers more likely to click through products of interest•Higher propensity to purchase

Call to action in ad copy• Provide immediate gratification for consumer• Will drive more sales



Blended and universal search provides more inventory, will drive more engaged consumers, more qualified clicks, thus reducing overall costs

• Utilize video and voiceover•Drive inquirer to desired transaction•Refine internal search for abandons•P&L every search return configuration•Set bid parameters

““Control Costs”Control Costs”


One of the HottestEmerging Media

Mobile E-CommerceMobile E-Commerce


Who knows where one ocean starts and where the next ocean ends…..

““All Oceans are Connected”All Oceans are Connected”

•Mobile reach shifts market messaging from the household to the individual without any geographic boundaries

•The mobile device is the most interactive medium available to the individual away from home or office

•Consumers WILL adapt to transacting via their mobile device


US Wireless Market StatisticsUS Wireless Market Statistics

• 203 million plus wireless subscribers

• 70% wireless penetration in most metropolitan areas

• 10 billion plus text messages per month

• $3.7 billion in revenues generated from wireless data

• 200% plus growth expected by 2009

• 10 billion plus revenue opportunity predicted by 2010

Source MMA Research 2006


‘‘Who is Marketing Text Today’Who is Marketing Text Today’

Weatherbug has a service when installed on a mobile device can deliver real time weather content to subscribers

eBay Mobile allows buyers to search for items, view a simplified items listing and bid and buy on selected goods

Staples developed web and mobile based contests for younger consumers to purchase their in store supplies and products online or in store

Warner Music Group developed offline and online media campaign for consumers to access their ring tone service for its Atlantic Records subsidiary to directly access ring tones from WMG artists from their mobile phones


The Barrier to Critical Mass Mobile EcommerceThe Barrier to Critical Mass Mobile Ecommerce

Today's wireless providers are stuck in yesterday’s contractual pay for minutes /data business model

1) Incoming messaging is at the cost of the consumer

2) Your plan adjustments require new lengthy commitments

3) Requires explicit permission to contact rather than provision of notice and choice

The Mobile E-commerce market will change withthe introduction of advertising supported wireless plans


In the meantime, how do you drive consumers to their mobile device and get them to take action:

1) Educate your consumers on how and what they an access via mobile devices

2) Develop affirmative opt-in strategy for mobile contact information

3) Offer consumer incentives to engage mobile interaction

““Pull versus Push”Pull versus Push”


““The Incentive”The Incentive”


•Does your brand, product or service lend itself for viewing on small mobile devices

•Do your customer demographics fit with this medium

•Do you have online and offline access to advertise mobile awareness

•Do you have affirmative opt-in and opt-out ability

“Stay Tuned to This New Emerging Media”

Is Mobile E-Commerce Right for You?Is Mobile E-Commerce Right for You?


Social Networking online is the largest and most uncontrolled positive

or negative public relations medium today

Social NetworkingSocial Networking


•Technology provides viral reach at exponential levels

•Marketing message and customer services totally exposed

•Chat rooms and blogs growing at unmeasured rates

•Member oriented sites becoming popular at all demographic levels

““No More Hiding”No More Hiding”


““Socializing Behind the Screen”Socializing Behind the Screen”

Social networking enables mass viral interaction with those we know and others we don’t know

•MySpace is still the largest player in this space and industry sources estimate it generates $525 million in the US

•Facebook revenue estimates are $125 million in the US

•Estimates for both indicate they represent 75% of the US social network ad spending

•Experts in this media estimate social networking to be a $2.5 billion business by 2011

Source MySpace 2007 Study


““Why Social Media”Why Social Media”

1) Consumers are connecting with other consumers and the trust tends to increase credibility of offering2) There is a great deal of buzz about this media as the

newest form viral of marketing

3) About 2/3rds of all North American Youth use it daily

4 )About 1/3rd of all North American Adults use it at least one a month*

Data from Forrester Research 2008


““Member Get a Member on Steroids”Member Get a Member on Steroids”

Think of social media in terms of offline Member get a Member


““Critical Differentiation” Critical Differentiation”

•The campaign focus should meet the needs of the community, before the needs of the marketer

•Effective campaigns will first understand the core drivers, interests, and rituals of the community and learn how to meet those desires

““Zero to Sixty in …….”Zero to Sixty in …….”

Encourage Member Interaction: •Successful social networking campaigns involve the audience

Quickly Scale: •Social networks are designed for information to quickly move from member to member

The Attributes: •Velocity, Viralness, and Spread are key



““Targeting”Targeting”

Reach the right people:

• Create a Social Ad and target it precisely to the audience you choose

• The ads can be targeted to users whose friends have recently engaged with a Social Network Page

• Social Ads are more likely to influence users when they appear next to a story about a friend's experience or interest


““Engage”Engage”

Utilize Media: •The best way to engage members is to offer them interactive media-- audio, videos, or demos

Foster self-expression or communication: •Members in social networks like to communicate with each other • Campaigns should satisfy these needs with the appropriateapplications

Offer a satisfying User Experience: •The language and overall look and feel should be familiar and identify to the audience


““Consumer Value”Consumer Value”

Enhance Value as Community participants:

•As more people contribute or interact with the campaign, the value is increased

•This can be in the form of content that is created by the community, contests, voting, or games

““Media Mix”Media Mix”

Integrate with other marketing activities: Successful social marketing campaigns aren’t single channel, they utilize multiple channels and mediums to enhance the overall activity

Such as: •Websites•Email newsletter•Offline media•Blogs•Podcasts



““Test Early”Test Early”

Design your offer to be interactive•Choice•Flexibility•Reference

Design your creative to engage multiple audiences at the same time•Variable Banner Messaging•Product Videos and Demos

Negotiate CPA or Controlled CPM


Transparency MarketingTransparency Marketing

With today’s technology and consumer protection awareness, it is critical that your customer fully understand yourtotal “value proposition”


If a consumer is unsure about the integrity of a company’s product or services….

•They will simply Google its name and look for reactions of others, especially those unrelated to the company

Transparency Transparency MarketingMarketing


•If the consumer is not certain a company is charging a fair price for a product or service….. •They will simply check out one of the existing forums, discussion boards or blogs related to a product or service

•Consumers will tell you exactly what they think

Transparency Transparency MarketingMarketing


In this viral information age companies need to provide for full disclosure

•Reveal “must know” information to consumers•Pay attention to your markets values•Share your business ideology and mission statement

““You can run, but you can't hideYou can run, but you can't hide""


Today customerscustomers expect nothing less than honest and fair advertising claims regardless of the medium your using.


““In Closing”In Closing”

•The World Wide Web, the Internet is the largest mass marketing body of ocean known to marketers as the sea is to fisherman

•It is our opportunity to seize the World Wide Web by casting our nets, evaluating our catch and bringing home the fruits of our labor!


THANK YOUTHANK YOU

Fosina Marketing Group PARALLELS of “ The Perfect Storm” to The Evolution of Direct to Consumer...

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